OMT and Target 2

The video discusses the connection between Target 2 imbalances and the ECB's outright monetary transactions, focusing on the roles of Spanish and German national central banks. It explains how these transactions affect the balance sheets and proposes a system open market account for Europe, which could involve multiple countries and offer secured credits instead of unsecured Target 2 credits.

What is the relationship between the target 2 imbalances and the proposed monetary transactions by Draghi?

How does the Spanish bank utilize the deposits received from selling Spanish bills?

What implications do outright monetary transactions have for the German National Central Bank?

What are the ongoing discussions regarding economic conditions for Spain in relation to the target 2 balances?

Discuss the potential outcomes of the proposed system open market account for Europe.